I received an email from a very good friend of mine a couple of weeks ago that I wanted to share with you for a couple of reasons.

The first is that the message and subject matter contained in it is so important.

It is the reason I am going covering it this week for you and secondly, for me, this person who shall remain anonymous is truly inspirational because what they went through and how positive they stayed during and after their illness is and was remarkable.

I am not going to include the whole email as it is too long but here are the bits I want you to read:

Serious Illness Cover
“Hi, I am just back from my holidays and whilst there, I got to thinking - hard not to when lying out on the beach in glorious sunshine. Most of you now know that not alone did I have cancer in 2000 but again in 2010 so several operations later, lying on a beach first time since my operations, I was somewhat self-conscious to say the least. The decision I came to whilst lying out was this, why should I be hiding behind a beach towel? These scars are scars of survival. It is nothing to be ashamed of.

Studies show that more and more people are surviving cancer and other serious illnesses. I was one of the lucky ones. Firstly for having survived cancer not once but twice and also to have had serious illness cover which allowed me to be in the fantastic position to have my mortgage paid off and to be able to afford holidays like that.”

How brilliant and brave it was of this person to think of others and to share their experience so that what they went through and what they arranged themselves would help others in the future.

And I think that is so important, to hear real life stories from people who have gone through a particular event rather than me just writing about a topic that you think is just theoretical and will never happen to you. This is real life and I only hope to God it never ever happens to you but let’s get real and let’s start talking and dealing with it now.

Serious illness is a subject that many people do not want to talk about and I don’t blame them, it is not a particularly nice topic of conversation, but one that is incredibly important.

Financial Implications of not having it
If you consider the financial implications that could happen to you and your family in the event of you becoming seriously ill, it is very important to make sure you are protected against this eventuality should it ever happen to you.

The statistics are frightening in that:

• Men have a 1 in 4 chance of becoming seriously ill before the age of 65
• Women have a 1 in 5 chance
• The most common illnesses are cancer, stroke and heart attack.

Origins of Serious Illness Cover
The origins of the first Serious Illness policy date back to 1983 in South Africa when the first serious illness policy was launched on the 6th October under the very threatening name of “Dread Disease Insurance.”

The name over the years underwent under a number of changes from critical illness, to serious illness and even today some companies now call it specified illness.

Regardless of its name, the good news is that if you do suffer a serious illness the chances of your surviving it are very good but your lifestyle may need readjustment.

Peace of Mind
If you become seriously ill the last thing you want is any financial worry such as the fear of losing your home because you cannot repay the mortgage.

Having serious illness will give you the peace of mind in these circumstances as it pays a benefit which will help with medical expenses and loss of income should a qualifying serious illness happen to you.

Tax Free Lump Sum
This type of policy will pay out a tax free lump sum if you are diagnosed with an illness that is covered under your policies specified illnesses.

Illnesses Covered
The most common form of illnesses that are covered by most companies and the most common illnesses that people claim under are: heart attack, cancer, coma, kidney failure, Alzheimer’s, stroke, severe burns, loss of sight, surgery to aorta, kidney failure, major organ transplant, multiple sclerosis. Over the last number of years, the number of illnesses covered by a typical policy by life assurance companies has increased dramatically where now some companies cover over 40.

I have come across some people who have a jaundice view of this type of policy as they hear stories of companies refusing to pay out on claims but I believe they are confusing it with a payments protection policy where refusal to pay out is common place.

Reasons for Unsuccessful Claims
There are a number of reasons why a life company will refuse your claim such as if your illness was caused by drug or alcohol abuse, it was self-inflicted, or you didn’t follow medical advice given, but the two main reasons why a claim would be turned down are because of either (a) non-disclosure and (b) the illness you are suffering from is not covered under your policy.

Because this type of risk to an insurance company is very high, it is important from their point of view that full information is disclosed to them when you are making a proposal so if you are in any doubt whatsoever about a question when completing the application form, ask your financial advisor or the company you are proposing to directly.

This is not just for the life company’s benefit by the way, it gives you peace of mind knowing that if you suffer an illness that is covered under the policies terms and conditions that your claim will be paid in full.

How much does it cost?
The premiums for these policies are normally based upon factors such as:

The sum assured, age, the term of the policy, smoker status, current health status to mention but a few. The premiums will vary from one insurance company to another so please make sure you get a quote from an advisor who can compare all the providers in the marketplace for you.

So, who should consider taking out such a policy?
The answer is those who you do not have any other form of ill health protection at present, or those who have a mortgage, a loan or other debts that would still have to be repaid if they contracted a serious illness.

Is it worth taking out such a policy?
I believe so, you obviously hope that you never have to make a claim but it gives you great peace of mind knowing that if you were diagnosed with an illness that prevented you from working for a period of time that you will receive a lump sum that will help with your mortgage repayments, medical bills and so on.

It makes your recovery that little bit easier knowing you are free from money worries because if you didn’t have such a policy or savings to fall back on would you be able to survive on the current state disability benefit of €188 per week?

Of course this has to be weighed up with the immediate monthly cost of taking out such a policy and I get that, but read the email at the start of this article again if you have any doubt that you would be wasting your money.